CAC Business Name vs Company (BN vs RC): Which One Do Online Sellers Need — and How to Get Verified
By the Dropp team · 8 min read · 26 October 2026
Quick answer
A Business Name (BN) registers a trading name owned by you personally — it is cheaper and simpler and suits most solo online sellers. A Company (RC, Limited by Shares) is a separate legal entity that suits businesses raising money or hiring. On Dropp, digital sellers can start with BVN only; adding an active BN or RC number confirms your business on the CAC register and adds a Verified badge to your product pages.
BN vs RC in one table
| Business Name (BN) | Company (RC / Ltd) | |
|---|---|---|
| Legal status | Same person as the owner | Separate legal entity |
| Liability | Owner is personally liable | Shareholders' liability is limited |
| Best for | Freelancers, creators, small vendors | Growing teams, investors, contracts |
| Number format | BN followed by digits | RC followed by digits |
| Annual returns | Yes, simpler | Yes, with more filings |
| Bank account | Business account in the trading name | Corporate account in the company name |
How to register with CAC
Registration happens on the Corporate Affairs Commission's online portal at cac.gov.ng. You reserve a name, fill in owner details, pay the filing fee and download your certificate once approved. Fees and timelines change, so always confirm the current amount on the official site instead of trusting a screenshot on social media.
- Use only the official CAC portal or a CAC-accredited agent.
- Pick two or three name options in case your first choice is taken.
- Keep your certificate and status report safe — banks and payment platforms ask for them.
How to check if a business is really registered
Before you pay a vendor you found online, search their name or number on the free CAC Public Search. If nothing shows up — or the status is inactive — be careful.
How the Verified badge works on Dropp
- Verify your identity with your BVN — a one-time code goes to the phone number linked to it.
- Open your business verification card and enter your BN or RC number.
- Dropp checks the number against the CAC register and confirms the business is active.
- Once approved, a Verified badge appears at the top of every product page you publish.
Buyers who have been burnt by fake vendors look for proof. A badge that says the business is real and active answers that question before they ask it — which means fewer DMs and more completed checkouts.
Not registered yet? You can still sell
Digital sellers can open a Dropp store and start selling with BVN verification only. Register your BN when sales pick up, then add it to unlock the badge.
Frequently asked questions
Do I need CAC registration to sell online in Nigeria?
Not to start on Dropp — BVN verification is enough for digital sellers. Registering a BN makes your brand more credible and is needed for many business bank accounts.
What does the Verified badge mean?
It means the seller's BN or RC number was found on the CAC register with an active status and the seller passed BVN verification.
Can I check any business on CAC for free?
Yes. The CAC Public Search lets anyone search by name or registration number.
Should I choose BN or Ltd?
Most solo creators start with a Business Name. Choose a Company when you need limited liability, partners or investors.
Sources & further reading
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